While interest income rose 15%, interest expenses rose 29% during the quarter according to the corporate filings made at the stock exchanges. But a sharp rise in the other income from a loss of Rs 34 crore to a positive income of Rs 452 crore is a major contributor to the sharp surge in the bank’s profits.
“The rise in profits is an outcome of the efforts of the last two-three years,” said P R Seshadri, MD & CEO of the bank. “During the period, bank registered growth in all the desired segments with a focus on quality asset, across all verticals — Corporate, SME, Auto Loan, Credit Card, Personal Loan, Gold Loan etc”
The bank’s cost of deposits rose from 4.27% to 5.18% , while yields on advances rose from 8.84% to 9.28% according to Seshadri. Gross non-performing assets came down by 74 bps ( one basis point is 0.01 percent) from 5.48% to 4.74% on a year-on-year basis.
The bank expects its business mix to grow in early teens in fiscal 2024-25, Seshadari said.
